Publication Type
Journal Article
Version
acceptedVersion
Publication Date
7-2020
Abstract
This paper studies the cyclical behavior of job separation and the characteristics of matches between workers and jobs. We estimate a proportional hazard model with competing risks, distinguishing between different types of separations. A higher unemployment rate at the start of an employment relationship increases the probability of job-to-job transitions, whereas its effect on employment-to-unemployment transitions is negative. We then build a simple job ladder model to interpret our empirical results. A model with two-dimensional heterogeneity in match (job) characteristics has the same qualitative features as the data. Once the model is extended to include cyclicality in the offered match characteristics, it can fit the quantitative features of the data.
Keywords
business cycles, match characteristics, job duration, unemployment, job-to-job transitions
Discipline
Macroeconomics | Work, Economy and Organizations
Research Areas
Macroeconomics
Publication
Review of Economic Dynamics
Volume
37
First Page
33
Last Page
53
ISSN
1094-2025
Identifier
10.1016/j.red.2020.01.003
Publisher
Elsevier
Citation
BAYDUR, Ismail and MUKOYAMA, Toshihiko.
Job duration and match characteristics over the business cycle. (2020). Review of Economic Dynamics. 37, 33-53.
Available at: https://ink.library.smu.edu.sg/soe_research/2365
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.red.2020.01.003